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Financial International Management
Project
Business Development Plan
Theme: Taking an existing Indian business to a foreign
country
Topic: Corporate Yoga
Submitted By:
Section A - Group 7
Group Members:
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Acknowledgement
We are highly indebted to Venkatesan Sir for his guidance and constant supervision
as well as for providing necessary information regarding the project supporting us
for completing the project. We would like to express gratitude towards Sir for his
kind co-operation and encouragement which was invaluable for helping us tide
through difficult times.
We would like to thank the Indian Institute of Foreign Trade (IIFT), for providing
us a platform to communicate and express our ideas. Including the subject of
Fundamentals of International Management in the curriculum gave a huge impetus
to our growth and managerial capabilities.
Also, this project topic nurtured the budding entrepreneurial dreams, allowing us
to explore avenues such as setting up of a business and its overseas expansion.
Planning, strategizing, controlling and decision making and their importance in the
functioning of an organization were understood.
Our thanks and appreciations also go to our colleagues who helped in developing
the project and willingly helped each other out with their abilities, thus
emphasizing the importance of collective working and group dynamics.
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1. Executive Summary
1.1.Why?
1.2.Objectives
1.3.Vision
1.4.Mission
2. Company Summary
2.1.Existing Business
2.2.Start-up/Expansion Plan
2.2.1. Company location
2.2.2. PESTLE Analysis
2.2.3. Entry mode
3. Strategic Analysis
3.1.SWOT Analysis
3.2.Porters Five Forces Analysis
4. Market Research
4.1.Market Opportunities/Trends
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4.2.Marketing Mix: 4P Analysis
4.3.Market Segmentation and Positioning
4.4.Competitive Analysis
5. Financial Plan
5.1.Office expense
5.2.Marketing expense
5.3.Pricing strategy, break-even
6. Implementation Summary
6.1.Milestones/Timeline
6.2.Sales forecast
6.3. Marketing Strategies
7. Management Summary
7.1.Organization Structure
7.2.Personnel Plan
7.3.
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1 Executive Summary
Corporate Yoga will serve Singaporean businesses, helping them to become more
productive, while lowering their overall costs.Our business is based on two simple facts:
1.Healthy employees are more productive than chronically ill employees.
2.It costs less to prevent injuries or illnesses than to treat them after they occur.
We currently have a 3-year old business operating in India in the cities of Delhi,
Mumbai, Bangalore and Hyderabad providing Corporate Yoga services to up to 30
companies on a regular basis. Having gained proficiency in this particular business, we
are now planning to expand our business to Singapore based on the similar model.
We tie worker productivity directly to the health care issue.
Stress at work is posing a great threat to the health of the employees and, in turn, to
the organizations. Several studies have shown that if the working conditions arestressful, there is an increase in absenteeism, tardiness and employees intention to
quit their jobsall of which have a negative impact on the bottom line. Recent studies
show that policies benefitting employee health also benefit the bottom line. Here, the
corporate yoga plays a vital role in reducing stress, minimizing illness, injury, disability
in the workforce and thereby making the organization competitive in the marketplace.
By helping employees change their behavior patterns and choose more healthy
lifestyles, Corporate Yoga will lower companies' health care expenditures, while raising
worker productivity. Health care expenditures will decrease due to reduced medical
insurance premiums, reduced absenteeism, reduced turnover rates, reduced worker's
compensation claims, reduced tardiness, shorter hospital stays, etc.
Why?1.1
1.1Why?
ASSOCHAM report1based on the survey of 500 corporate employees from 300 various
companies/organizations across 18 broad sectors of the economy revealed that nearly
75% of the respondents suffered chronic/lifestyle or acute disease. Out of the 65% ill
corporate employees, 32% were afflicted to lifestyle disease, followed by 21% suffering
from chronic disease and remaining 12% have an acute ailment.
Objectives1.2
1.1 Objectives
1. Continue to provide on-site Yoga programs to businesses and schools in India.
2. Expand Corporate Yoga into 25 companies and 20 schools in Singapore by the end of
next year.
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3. Expand operations in other Asian countries like Malaysia, Bangladesh, and Indonesia
etc. in 3 years.
4. Enter the American and European market within 5 years.
Mission1.3
1.2 Mission
Our mission is to ensure the holistic well-being of an individual where he can perform
to his best in every aspect of lifepersonal and professional. We aim to create a health
awareness in the corporates where due to the huge pressures, the employees are at a
risk of suffering from various diseases.We do this with love, compassion, a sense of
humor, and with respect for what each individual can accomplish through Yoga and
throughout their lives.
Corporate Yoga is a health service that helps businesses and individual workers attainone of the greatest gifts of all--that of good health. Personal gains, such as improved
self-esteem and self-motivation, combined with measurable benefits will create
tremendous advantages for both the employer and the employee.
Vision1.4
1.3 Vision
Our vision is to be the largest company specializing in corporate yoga services across
Asia within 20 years.
Core Values1.5
Teamwork
The power of many is greater than the power of one. We treat one another with
respect, welcome new ideas and encourage everyone to step up and go the extra mile
by doing what needs to be done. We never say, Thats not my job.
Exceptional Customer Service
Our number one job is to ensure our customers are happy. Every interaction with them
is an opportunity to delight. We deliver in a timely, accurate and friendly manner with
a can-do attitude, never forgetting that they come to us by choice.
Personal Responsibility
We lead by example with honesty, integrity and respect. We like to win and we share
our successes. We applaud initiative, hold team members accountable and own our
mistakes.
Keep it Simple
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Our philosophy is that less is more. We strive to be innovative and efficient with a
compulsion to stay lean and mean.
Keep it Light
Not only is laughter the best medicine, its also one of the keys to a happy, healthy,
balanced brand of success. We take our jobs seriously, but that doesnt mean we cant
have fun doing them; its important that we do so.
Growth and Learning
We are committed to evolving our programs and developing our employees. After all,
transforming lives is our business. We strive to create an environment where everyone
has the opportunity to grow. We look toward the future and learn from the past. We
embrace change.
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Company Summary
2 Company Summary
Existing Business Operation
Existing Business Operation1.6
Company Ownership
Corporate Yoga is a privately held corporation. The founders have an equal stake in the
ownership of the company.The company was registered in 2010.
Business Operations in India
Corporate Yoga has 4 studios each in Gurgaon, Bangalore, Mumbai and Hyderabad. We
provide corporate yoga services to 30 companies and 20 schools in India apart from
private sessions at the studio.
The details of the existing business operations are outlines in Chapter 5: Financial Plan
Team:
Managers:
Finance Manager
Human Resource Manager
Health Services Manager
Marketing Manager
Project Manager
15 20 instructors
34 Executive instructors having salary of Rs. 1,00,000/- per month
57 Senior Instructors having salary of Rs. 75,000/- per month
79 Junior Instructors having salary of Rs. 40,000/- per month
Studio-cum-office rentGurgaon: Rs. 75,000/- per month
Mumbai: Rs. 90,000/- per month
Bangalore: Rs. 60,000/- per month
Hyderabad: Rs. 50,000/- per month
Serving 30 companies and 20 schools in India.
Private sessions for general public
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Timing for schools will be morning 8 to evening 2
Expansion Plan1.41.2
After setting up of our base in India with 4 cities primarily where the service industry
has grown exponentially, we want to take our company global. India, has yoga industry
which is very much unorganized which gives additional advantage to the individual
yoga instructors.
Hence we see a limit to the expansion where an individual yoga instructors charge
much less for the same. Hence we plan to take our expertise in Yoga with our certified
instructors to a country with a service based industry and with a population with a high
th disposable incomegreater than .
We also need to consider the business environment of the industry where we need to
analyze the ease of doing business and the competitiveness of the industry.
1.1.12.1.1Company Location: Singapore2
The most compelling reason for Indian entrepreneurs to go to Singapore is the ease of
doing business there. The Southeast Asian nation topped the World Bank's Doing
Business 2013 survey of 185 countries. India is ranked 132.
In terms of starting a business, the city-state is ranked fourthwhile India comes in at
173. The World Bank survey also notes that it takes three permits and three days to
start a business in Singapore. In comparison, it takes 12 approvals and 27 days to start
a business in India.
Singapore's easier tax regimemakes it even more attractive. Singapore corporate tax
rate is 8.5% for profits up to S$300K and a flat 17% for profits above S$300K. Compare
that to Indias corporate income tax rate of 30.9% for taxable income up to INR 10
million and 33.9% for taxable income above INR 10 million. Unlike India, there is no
dividend tax and no capital gains tax in Singapore. Moreover, foreign-sourced income is
taxed only when remitted into Singapore whereas Indian companies are taxed on
worldwide profits irrespective of whether they are remitted into India or not.
A company must be present for at least two years in Singapore to avail tax benefits.
Companies must also show a minimum S$200,000 in costs and at least one founder
should have a work visa in the city-state, he says. "Singapore is a fantastic structure to
explore but companies can get tax benefits only if they can prove that the motive toopt for this structure is not tax benefits only.
The number of Indian companies with operations in the city-state has jumped to 4,000
in 2012 from 1,100 in 2000, according to the Singapore Economic Development Board
(SEDB). This gives us an idea that this has been happening at very fast pace.
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1.1.22.1.2PESTLE Analysis
Pros Cons
Political
Stable government, PAP in power since
independence
Few political turbulence and negative images
Efficient and transparent govt.
5thleast corrupt nation
Economic
Easy application to system for foreign players to start
business
High per capita income
Reduced interest rates
High dependence on global market trends
Allowance of 100% FDI 18 FTA with 24 trading partners
Less tax regimes investor are not subject to capital
gains tax, dividend tax and foreign exchange controls
Volatility and
fluctuations in
macro-economy
Widening trends
in incomeinequality
Social
Sound education system, this trained labor
English as primary language
Multicultural, thus high level of acceptance
Population mix
High living standard
Decreasing birth
rate and ageing
population
Income inequality
Technological
World class technological infrastructure, #2 globally
Business parks
High Research and Development Booming e-commerce more than 3.7 million
internet users
Legal
Quick and easy to establish business
Low corporate tax18%
Competition Actprevent anti-competition behavior
Minimal restrictions on foreign exchange transactions
Open Door Policyeasy to hire foreigners
Easy to set up (ranked 4th) and exit business (ranked
2nd
)
No minimum wage
Possibility of
political
interference in
judiciary system
Increasing
regulations for
future regulation
Future difficulties
with immigration
Environment
al
Acceded to many international environmental
agreements
Heavy domestic regulations on environmental
protection
Industrial
pollution
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1.1.32.1.3Entry Mode3
From the above diagram we observe the various options a foreign entity has to enter
Singapore. Each of them has its own advantages and disadvantages.
As we have four partners hence Sole proprietorship is not possible and also Partnership
route will not be preferred as we do not want to dilute the ownership structure as of
now.
To avail tax benefits, we dont want to enter via the branch or representative office
route as only registered companies will get tax benefits after a certain time
period(currently 2 years).
Hence the options remaining are entering by establishing an incorporate company.
Initially we intend to enter as a privately listed company and set up our operations. In
about 5 years in order to raise capital to enter the North American and European
markets, we will go for public listing.
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3.2 Porters Five Forces Analysis1.6
Porter five forces analysis is a framework for industry analysis and business strategy
development. It draws upon industrial organization economics to derive five forcesthat determine the competitive intensity and therefore attractiveness of a market.
Attractiveness in this context refers to the overall industry profitability. These are a few
vital questions that need to be answered before starting a business.
Bargaining power of customers
This refers to the ability of the consumers to affect the firm.It also indicates their
sensitivity to price fluctuations. This is based on the substitutes available as well as
uniqueness of the products offered by our business.
Uniqueness of our product:
Personalized services Small batch size
In-house services provided
Cuts travelling expenses
Helps in inter-personal relationship building between co-workers
Bargaining power of suppliers
The bargaining power of suppliers is also described as the market of inputs. Suppliers
of raw materials, components, labor, and services (such as expertise) to the firm can be
a source of power over the firm, when there are few substitutes. Suppliers may refuse
to work with the firm, or, e.g. charge excessively high prices for unique resources.
Equipment Supplier
College/University for hiring teachers-
Requirement of certified teachers might be hard to meet, because certification
demands a set of minimum standards to be met. So the instructors can demand
a higher pay.
Accreditation from the international Yoga Federation-International Yoga
Federation is the largest yoga organization in the world and is open to all yogis
and yoga organizations. IYF supports the minimum international standards for
yoga teachers from 1987.*
*http://www.internationalyogafederation.net/standards.htm
Substitutes
This occurs when companies from other industries try to move into the market. The
existence of products outside of the realm of the common product boundaries
increases the propensity of customers to switch to alternatives.
Substitutes available:
Gymming
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Pilates
Aerobics
Swimming
Dance Tai Chi
WholyFit-the Christian alternative to yoga
Threat of New Entrants
The percentage of people that practice Yoga increases on an average of 20-25%
every year.
Spendings on Yoga products have increase by 87% in the past 5 years
With overall growth of the wellness industry, new training programs to support
practitioners are in demand, including advanced professional development and
business training.
Insurance companies are already paying for yoga Yoga will be prescribed by the doctor
Yogas growth is part of a bigger wellness trend. Those companies that want to
capitalize off the trend will add services such as nutritional programs, exercise
routines, spa services and wellness consultations in conjunction to yoga
offerings.
All these statistics clearly indicate the growth potential for corporate yoga, and this
surge will definitely create competitors, wanting to tap into this growing market.
Competitive rivalry among the industry
Porter calls this "the scrambling and jockeying for position." Businesses compete for
customers by price, quality, and speed.
Existing yoga classes and courses available in Singapore:
Sivananda Yoga
Anahata Yoga
Pure yoga
Ananda Marga
COMO Shambhala Urban Escape
Green Yoga
Om Shiva Yoga center
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34Market Research
Corporate Yoga has done a market research to gather information about the market
and about the common attributes of the prized and loyal customers. This informationwill be leveraged to better understand who is served, their specific needs, and how
Corporate Yoga can better communicate with them.4
http://www.mom.gov.sg/statistics-publications/national-labour-market-
information/statistics/Pages/employment.aspx
4.1 Market Trends1.7
The statistics paint a promising picture. The National Sports Participation Survey
conducted by the Singapore Sports Council in 2006 revealed that yoga is the 10th
most
popular sport among local women. The awareness of Yoga is spreading in Europe.5
http://www.nsga.org/i4a/pages/index.cfm?pageID=4492
According to the article Match and Stretch by Lionel Seah, The Strait Times
Interactive, 9 Nov 2002, Yoga studios are popping up across the island of Singapore and
the number of practitioners of this exercise has increased dramatically. For instance,
the membership at the yoga centers have jumped from fewer than 100 when they
started in 1998 to more than 3,000 now. At smaller studios, membership has risen by
at least 40%.6
15.90%
13.20%
70.60%
0.70%
Manufacturing
Construction
Services
Others
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http://www.mom.gov.sg/statistics-publications/national-labour-market-information/statistics/Pages/employment.aspxhttp://www.mom.gov.sg/statistics-publications/national-labour-market-information/statistics/Pages/employment.aspxhttp://www.mom.gov.sg/statistics-publications/national-labour-market-information/statistics/Pages/employment.aspxhttp://www.mom.gov.sg/statistics-publications/national-labour-market-information/statistics/Pages/employment.aspxhttp://www.mom.gov.sg/statistics-publications/national-labour-market-information/statistics/Pages/employment.aspx8/12/2019 FIM Plan Final
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4.3 Market Segmentation and Positioning1.9
Segmentation & Targeting
The market for corporate yoga is not particularly segmented, as potential customers
include all downtown businesses that offer their employees some type of medical
benefits, are experiencing escalating health care costs, and wish to more effectively
manage those costs.
Corporate Yoga, however, segments its services for individual organizations. Corporate
Yoga works with senior management to develop mission statements and provide
incentive plans, and with employees to design personalized health and fitness
programs.
The targeted customers are corporate employees and manufacturing employees.
Positioning
Corporate Yoga will position them selves as the most effective wellness strategy and
program developer. This positioning will be supported by statistics indicating an
increase in worker productivity and a decrease in business operation expenses from
the implementation of corporate wellness programs.
4.4 Competitive Analysis1.10
Singapore is fast becoming the mecca in Asia for the yoga-aficionado. There are more
than 65 yoga studios, from giants like Pure Yoga to boutique studios peppered around
town. Type in Yoga in Singapore in Google, you get nearly 5.5 million search results.
Some of the yoga centers with their practices are mentioned below:
1.OmShiva Yoga Center7
Course Fees: $ 2900
Course Duration: 40 days
Course Syllabus:
Part 1 - THEORY - 80 hours
Part 2 - YOGA PRACTICES
Part 3 - FIELD PRACTICE: 120 HOURS TEACHING PRACTICE
Part 4 - FIELD REPORT on any suitable yoga subject
2. True Yoga8
Established in late 2004 in Singapore by Founder and Group CEO Mr. Patrick Wee, this
Singapore brand has established its presence in five countries Singapore, Malaysia,
Taiwan, Thailand and China.
Types of Yoga taught: Hot Yoga, Bikram yoga, Pilates, Personal Training, Dance
Course duration: 50 days
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Course Fees: $6000
Secondary Business: Aesthetics and Spa
Reach: 30 centers across 5 countries
3. Ananda Marga Yoga Centre
Programmes Offered: Teachers Training Program, Yoga Trials, Beginner Class
Course Fees: $ 5500
Secondary Business: Homeopathy, Yoga Books and Apparel
There are many more players like AbsoluteYoga, Yogashala, Iyengar Yoga center, Yoga
Movement to name a few operating in Singapore. But our plan is distinct for it
specializes in yoga for the corporate. And that gives a good advantage over other
players and we can concentrate all our energy on the target group selected by us.
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Class capacity:50 students
Estimated Income =Total no. of batches(per day) X Total Cities X Different batches X
Price X Total Students
= 2*4*5*500*50 = Rs. 10,00,000/ month
Society
Frequency:10 societies per city, everyday 1 hour session in 2 batches per day
Price: Rs. 2500/ month
Class Capacity:75/ batch
Equipment:Mats provided to every individual= 30
Estimated income = Total mats provided X Total participants X Total Cities +
Students/batch X Total Cities X Total Batches X Price per participant
= 30*150*4 + 75*4*2*2500=1518000/ month
Total Income = Income from Company (A) + Income from schools (B) + Income from
Society (C)
= 1505000 + 1000000 + 1518000
= Rs. 40,23,000/ month X 12 = Rs. 4,82,76,000
Total Expenditure = Rs. 2,62,60,000/ year
Total Profit per year= 4827600026260000 = Rs. 2,20,16,000 / year
Business Plan for operation in Singapore
Cost during 1st
year
Office Space/Studio space rent:$5000/ month @ Rs. 65/$ = Rs. 39,00,000 / year
Total Branches:3
Total Rent Cost:Rs. 1,27,00,000
Yoga Instructors Salary:$5000/month @ Rs. 65/$ = Rs. 39,00,000 / year
Total Yoga instructors:On an average 8/ year (See below {business expansion plan})
Cost on Instructors:Rs. 3,12,00,000 / year
Total Advertisement/promotional cost:Rs. 36,00,000
Total Cost:Total Rent Cost + Cost on Instructors + Advertisement Cost =
Rs. 4,75,00,000
Initial Outflow:Rs 4,75,00,000
RetainedCapital: Rs 2,20, 00, 000
AdditionalCapital Req. : Rs
2,55,00,000
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The additional Rs 25500000 will be raised through debt capital because the cost of
raising debt in Singapore is very cheap and raising capital through equity will be very
difficult as our enterprise will be a start up of sorts and people would perceive it as
risky. Also, according to the pecking order theory, raising capital through internally
generated capital is cheapest followed by debt and then equity.
Companies
Frequency: Bi-weekly 1 hour sessions in 3 batches per day
Monthly Price: $100 per person
Class capacity: 30-40 students (depending on the enrolment and space available)
Equipment: Yoga mats at $15 per mat. We supply every company with 50 mats.
Schools
Frequency: Weekly 30 min sessions 5 batches per day
Price: Rs. $20 per student per month
Class capacity: Upto 100 studentsEquipment: Provision of 100 mats for use during the session owned by the company
Business Expansion Plan
1st quarter
Personnel: 5 Yoga instructors with monthly salary of $5,000
No. of companies: 10
Estimated income: 100*40*3*10 = $1,20,000
No. of schools = 10
Estimated income: 20*100*5*10 = $1,00,000
2nd quarter
Personnel: 7 Yoga instructors with monthly salary of $5,000
No. of companies: 15
Estimated income: 100*40*3*15 = $1,80,000
No. of schools = 15
Estimated income: 20*100*5*15 = $1,50,000
3rd quarter
Personnel: 10 Yoga instructors with monthly salary of $5,000
No. of companies = 20
Estimated income: 100*40*3*20 = $2,40,000
No. of schools = 20
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Team: 15 instructors
3 Having Rs 1 lac (Executive Instructors)
5 Having Rs 75000 (Senior Instructors)
7 Having Rs 40000 (Junior Instructors)
Studio-cum-office rent
Gurgaon: Rs. 75,000/- month
Mumbai: Rs. 90,000/- month
Bangalore: Rs. 60,000/- month
Hyderabad: Rs. 50,000/- month
Serving 30 companies and 20 schools in India.
Private sessions for general public
Timing for schools will be morning 8 to evening 2
Companies
Frequency: Bi-weekly 1 hour sessions in 3 batches per day
Price: Rs. 2000/- per person if self-sponsored. Rs. 1500/- if sponsored by the
employers.
Class capacity: 30-40 students (depending on the enrolment and space available)
Equipment: Yoga mats at Rs.250/- per mat. We supply every company with 50 mats.
Estimated monthly income: 1750*35*3*30 = 5,512,500/-
Schools
Frequency: Weekly 30 min sessions 5 batches per day
Price: Rs. 100/- per student per monthtoo low man 500/student/month is min
Class capacity: Upto 100 studentsEquipment: Provision of 100 mats for use during the session owned by the company
Estimated Income: 500*100*20 = 10,00,000/-
Society
10 societies
Everyday: 1 hour session in 2 batches per day
Class Capacity: 30/batch
Equipment: Mats: To every individual= 30*10*2=600
Cost/class=100/day=2500/month
Estimated income/month=600*2500=1500000/-
Business Plan for operation in Singapore
Office Space/Studio space rent: $5000/ month
Companies
Frequency: Bi-weekly 1 hour sessions in 3 batches per day
Monthly Price: $100 per person
Class capacity: 30-40 students (depending on the enrolment and space available)
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Equipment: Yoga mats at $15 per mat. We supply every company with 50 mats.
Schools
Frequency: Weekly 30 min sessions 5 batches per day
Price: Rs. $20 per student per month
Class capacity: Upto 100 students
Equipment: Provision of 100 mats for use during the session owned by the company
1st quarter
Personnel: 5 Yoga instructors with monthly salary of $3,000
No. of companies: 10
Estimated income: 100*40*3*10 = $1,20,000
No. of schools = 10
Estimated income: 20*100*5*10 = $1,00,000
2nd quarter
Personnel: 7 Yoga instructors with monthly salary of $3,000
No. of companies: 15
Estimated income: 100*40*3*15 = $1,80,000
No. of schools = 15
Estimated income: 20*100*5*15 = $1,50,000
3rd quarter
Personnel: 10 Yoga instructors with monthly salary of $3,000
No. of companies = 20
Estimated income: 100*40*3*20 = $2,40,000
No. of schools = 20
Estimated income: 20*100*5*20 = $2,00,000
4th quarter
Personnel: 10 Yoga instructors with monthly salary of $3,000
No. of companies = 25
Estimated income: 100*40*3*25 = $3,00,000
No. of schools = 20
Estimated income: 20*100*5*20 = $2,00,000
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Private studio sessions @ $25 per session
No. of per day enrolments = 40
Estimated income: 40*25*30 = $30,000
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56Implementation Summary
6.1 Milestones/Timeline1.11
1.12 Sales Forecast
October 2013:Incorporation
November2014:
Increase toabout 50
companies in
Singapore
April 2015:Going public
January 2016:Expanding toother MISTcountries
March 2018:Entry to USA
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6.2 Marketing Strategies1.13
Selling yoga to corporations and organizations is not difficult if we have the right
approach, techniques and know-how. In fact, with the proper tools and skills, thebenefits of yoga will sell themselves.
Newsletters and Brochures: Circulate brochures and newsletters to companies
through both electronic and real media to communicate the benefits of
Corporate Yoga in a meaningful way to our potential customers.
Internet:Maximizing the marketing power of the Internet, via email advertising,
search engine optimization, and more
Outdoor:Hoardings, billboards etc. in commercial/industrial areas.
Offer some free classes/workshopsIn a new organization or school or even in
the studio. Target specific audiences or events on some special occasions, ifappropriate.
Join local business organizations and networking groups. Many, such as home-
based business groups, are inexpensive to join. Once they get to know you and
what you do, the other business people in your group will mention your
business to others and may even give you referrals
Promote or sponsor a charitable event: Scope of getting huge amounts of press
for events like thiswhich can translate into new customers.
Website/Blog - and use it to build an audience of people who would be
interested in your products and/or services. Make it interactive, write regularly
about topics related to our business.
Social Media (Facebook, Twitter etc.): Promote your business and
communicate the benefits on social media sites like Facebook and Twitter,launch online events and try to garner maximum number of likes.
Ask for referrals Ask our client companies and schools to refer us to their
associates.
Distribution of CDs: Distribute CDs containing audio-visual guide to Yoga
amongst our customers.
Sponsor/participate in corporate events and trade fairs.
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6 Management Summary
6.3 Organization Structure1.14Proposed Organization Structure according to Singapore Laws
9
Corporate Yoga is currently a small organization. It is the brainchild of a dynamic
personality, namely, Mr. XYZ, who is the CEO who oversees all the activities of the
organization.
The Manager of Health Services is the contact for and supervisor of the yoga
specialists and health educators and promoters. He is responsible for matters
relating to administration and coordinates the activities of all the teachers who
are a part of the organization.
The Manager of Sales and Marketing is responsible for establishing anddirecting the marketing and sales activities of an organization including
advertising and public relations. These activities affect the direction and goals of
business.
The Manager of Finance is responsible for guiding and directing financial and
control activities of the company in a manner designed to protect assets, meet
reporting requirements, and effectively plan for and audit the financial needs of
the firm. He ensures implementing and complying with financial and
administrative procedures to ensure compliance with regulations.
The Manager of Human Resource handle personnel decisions, including hiring,
position assignment, training, benefits, and compensation. The must ensure
hiring of certified and capable Yoga teachers for the organization.
The Project manager is responsible for the planning and execution of businessdevelopment plans. The expansion of business in Singapore is particularly is
directly led by him.
As the firm grows and expands, more positions will be added as needed.
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1.15 Personnel Plan
Year 1 Year 2 Year 3Fitness Center Management $15,000 $15,000 $15,000
Program Director $54,000 $54,000 $54,000
Personnel Manager $36,000 $36,000 $36,000
Health/Fitness Specialists $33,000 $33,000 $33,000
Attendants $12,000 $12,000 $12,000
Total People 0 0 0
Total Payroll $150,000 $150,000 $150,000
Chief ExecutiveOfficer
Manager
Sales andMarketing
Manager
Finance
Manager
Human Resource
Manager
Health ServiceProject Manager
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7 Appendix
Entering Singapore via Private limited incorporation:
General Characteristics:
In Singapore, the two main types of incorporated companies are:
Private Limited (Pte Ltd) Companies: the number of shareholders is limited to fifty or
less and has restrictions on the right to transfer its shares
Public Companies: the number of shareholders can be more than fifty members and
the company may raise capital by offering shares and debentures to the public
View the diagram for the various possibilies of the above types of business.
A Private Company limited by shares - Private Limited Company (Pte Ltd) is the most
common type of company.
A Singapore Company may be registered with only one shareholder who can be an
individual or a corporation. There is no requirement for shareholder(s) to be resident inSingapore.
The liability of the shareholders is limited to the amount, if any, unpaid on the shares
issued to them. However, there is no minimum capital requirement. The company can
be formed with an issued capital of S$ 1 that can subsequently be increased to the
required amount. The par value of shares is usually fixed at S$ 1 per share. No-par
value and bearer shares are not permitted.
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Registration
Application by a foreign company/individual is mandatory through a professional
business registration firm.
A foreigner, who wants to relocate to Singapore to be the director of his own company
needs to apply for an Employment Pass under the EntrePass Scheme at the Ministry of
Manpower (MOM). Only upon approval of his EntrePass application, he may then
proceed to himself incorporate the company with ACRA. He may also apply for an
EntrePass if he owns a company registered with ACRA for not more than 6 months at
the point of his EntrePass application.
A Company must have a registered office situated within Singapore. Your company
registration agent can provide this service if required. You may alternatively register a
residential flat or property under the Home Office Scheme (HO).
The first step in incorporating a company to obtain approval for the proposed name.
Names for all companies in Singapore must conform to certain guidelines laid down in
the Companies Act. See here for guidelines on Name Approval
After the company name has been approved, the following incorporation documents
must be prepared and filed:
Memorandum & Articles of Association setting out the objects and bye-laws of the
proposed company.
Statutory Declaration of Compliance (Form 6)
Certificate of Identity (Form 7)
Notice of Situation of Registered Office and of Office Hours at time of Incorporation(Form 44)
Consent to Act as Director & Statement of Non Disqualification to Act as Director (Form
45).
Representatives
One man companies with a single (individual or corporate) shareholder are admissible
and a company can only have one director. However, at least one director must be
ordinarily resident in Singapore, i.e. a Singapore Citizen, a Singapore Permanent
Resident, or a person who has been issued an Employment Pass/Approval-In-Principle
letter/Dependants Pass. Any person at least 18years old may be appointed as a
director.
Every foreign company registered under the Companies Act must have two agents
acting on its behalf in Singapore. These agents must be Singaporeans, Singapore
Permanent Residents or Singapore Employment Pass Holders.
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Directors of a Singapore company bear a host of duties and responsibilities. The
Companies Act requires directors to act honestly at all times and exercise reasonable
diligence in discharging their duties. Directors duties fall under three main categories:
Fiduciary Duties: Directors have to act in what they honestly believe to be the
companys interests, and not in the interests of any other party.
Duty of Skill, Care and Diligence: A duty of care means, for example, that a director
needs to find out what his powers and responsibilities are under the companys articles
and under the law.
Statutory Duties: Statutory duties are imposed on directors by statute, principally the
Companies Act.
A Company Secretary, responsible for maintaining the company records and other
administrative duties as prescribed by law, must be appointed within six months. The
secretary shall be a natural person who has his principal or only place of residence in
Singapore. The Companies Act prescribes minimum qualifications as regards who can
be a company secretary. Private companies may also appoint their qualified employeesor directors to perform these duties.
An Auditor must be appointed within three months from the date of incorporation
unless it is exempted from audit requirements under Section 205B, or 205C, of the
Companies Act. In practice, appointment is arranged upon incorporation of the
company.
Compliance
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The following are the major requirements and filings an incorporated company must
comply with:
Have a registeredoffice as from the date of incorporation.This office has to be open
and accessibleto the public for not less than five hoursduring ordinary business hours
on each day(except Sundays, weekends and public holidays).
The full name of the company and the Company Registration Number must appear on
all letterheads, prospectuses and other official documents used by the company.
Keep and maintain certain statutory books and registers such as a register of members,
a register of directors, managers, secretaries and auditors and a register of directors
shareholdings
The Companies Act requires the financial statements of every company to be audited
once every year. This comprises a statement of profit and loss, balance sheet, directors
report, statement by directors and an auditors report to be prepared; and other
disclosures required by Statements of Accounting Standards in Singapore. The audited
accounts and reports have to be filed with the Registrar within one month after the
AGM.The first annual general meeting (AGM) must be held within 18 months of the date of
incorporation. After that there must be at least one annual general meeting not more
than 15 months from the date of the last AGM. No physical meeting must take place if
all shareholders consent. At the AGM, the directors are required to present to the
shareholders the audited accounts for the immediately preceding financial year, and
those accounts must be prepared up to a date not more than six months before the
date of the AGM. The fiscal year end is normally determined at the first directors
meeting.
Changes to registered particulars have to be notified to the Registrar, including a
change of name, the alteration of the companys Articles of Association, the allotment
of new shares and an increase of the authorized capital.
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References
8
[1]http://www.dialurdoctor.com/research.aspx
[2] http://www.luxembourgforbusiness.lu/market-entry-guide-singapore
[3] http://www.entersingaporebusiness.info/
[4http://www.mom.gov.sg/statistics-publications/national-labour-market-
information/statistics/Pages/employment.aspx
[5] http://www.nsga.org/i4a/pages/index.cfm?pageID=4492
[6] http://www.iayt.org/site_vx2/publications/Bibliographies_Members/stats.pdf
[7] http://www.omshivayoga.com/
[8]http://www.trueyoga.com.sg/
[9]http://www.bycpa.com/offshore/offco/singapore_company_faqs.html#q2
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